20,000 households will have interest only exposure over £50,0001
according to studies in the BSA’s Lengthening the Ladder report over the coming years the interest only exposure is growing which will create a problem for some borrowers approaching their mortgage term end date.
30% of all mortgages for borrowers over the age of 65 are on interest only1
This can limit borrowers accessing a range of product rates and choice of conventional lenders.
approximately 40,000 interest only mortgages are due to mature between 2017 and 20322
Alongside an ageing demographic for the 55+, research from Experian suggests that between 2017 and 2032 there will be over 40,000 interest only mortgages due to mature.
Some borrowers may not be at a stage to pay their mortgage off. However, they do have other options available should they wish to continue with their mortgage and stay in their home.
How can we help?
We know that all borrowers approaching or in retirement will be at a stage where they’d like to pay off their mortgage entirely… but if they’re not, what other options do they have?
At the Marsden, our Older Borrower range offers a conventional mortgage that can be taken in or into retirement as an alternative to lifetime mortgages. We will look at a case if your client is:
- looking to remortgage to a new lender
- looking to downsize at the end of their mortgage term
- looking for solution to transition to a part and part mortgage
Our intermediary team are also on hand to discuss any cases you may have. If you have a case outside criteria, get in touch and we will see how we can help.
